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Since announcing the first settlements with pension funds and other large investors worth about $3.5 billion in February, the insurer has paid out another billion dollars as part of the hedge funds “Structured Alpha” and reached other settlements, said Renate Wagner, a member of the board of directors at the annual general meeting on Wednesday in Munich. CEO Oliver Bäte promised shareholders that Allianz could soon put the hedge fund debacle behind it. It is based on a “rapid and definitive agreement” with the complainants and the authorities. According to analysts’ estimates, the sum of the comparisons with investors and the sanctions of the American authorities could reach more than five billion euros.
Allianz has already amortized 3.7 billion euros for “Structured Alpha”. Net decimated 2021 profit by 2.8 billion euros. But Bäte made it clear again that this would not be the end of the road. The group will present the figures for the first quarter next week.
“That’s a lot of wood,” said lawyer Daniela Bergdolt of DSW’s shareholders’ association. The fund’s billions in losses weighed on the stock price like the sword of Damocles. “How could this have happened? She accused Allianz’s board of downplaying the problems at first. Supervisory Board Chairman Michael Diekmann said the agency was notified of the lawsuits in July 2020. But it wasn’t until August 2021, after the SEC and the U.S. Department of Justice, which the insurer warned of billions in costs.
A good twenty pension funds and other large investors had sued Allianz for a good six billion dollars. She had sold them the hedge funds with a volume of $15 billion as a supposedly safe investment. At the start of the Corona crisis, however, investors lost a large part of their stake when the stock markets crashed. They accused Allianz of deviating from its investment strategy in the face of the passing panic in the markets.
The Allianz share was listed on Thursday via XETRA ex-dividend ultimately down 6.46% (-13.79 euros) to 199.76 euros – the dividend discount was 10.80 euros per share.
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